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Trouble Adding A User To Windows 2000

I'm building a machine for my wifes office.
I loaded 2000, sp4, all my drivers, winzip, zone alarm, norton, got all the updates from MS, put in office 2000.
Now I switch the machine to "users must enter a user name and password to use this computer."
I've got the administrator account and the primary user I put in when installing windows (ellen) working fine.
Now when I add an account for her office mate (kim), I get the following when I try to log in "Windows cannot copy file c:\document and settings\default user\templates\wordpfct.wpg to location c:\document and settings\kim\templates\wordpfct.wpg. Contact your network administrator."
Sometimes the file that it cannot copy varies, but otherwise the error repeats as many times as I try.

So I have fooled around a bunch to try to get this with no luck:
-delete and re-create kim account
-under admin create kim folder with all subfolders (tried copy of ellen and copy of default user)
-tried above and explicitly give all permissions to every user to the folder
-turned off user names and passwords and repeat folder creation, then turn on user names and passwords.

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I am having similar trouble with the President of the Company's PC (!!!)

For now, everything works, so I'm letting it go for a (short)while(the PC he is using right now is only a replacement, so it's not THAT big of a deal). It's annoying to seee such a message. I can't quite remember what the fix was. I think the reason I'm seeing the message is that I insstalled Office 2k on an admin user account on the directory, rather than on the local admin account.

I could swear I've seen something similar before and I hope it will just take a little fumbling to get it fixed - but for now, I'm too busy(!!!)

I'll let you know if I get it fixed before anyone else posts, but it could be a couple of days.